Great Debate Erupts Over Great-Rotation Thesis for Stocks, Bonds
- Schwab’s Kleintop sees more money flowing into stocks in 2017
- Goldman and Citigroup say bond-equity rotation is illusory
The Gundlach vs. Gross 10-Year Bond Yield Debate
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How long will it last? The so-called great rotation -- the massive flow of money out of the bond market into stocks -- is increasingly splitting heavyweight analysts.
The cycle of funds out of fixed-income markets and into equities, shown in the chart below, has taken a bit of a breather in recent days. Even so, for Charles Schwab Corp.’s chief global strategist Jeffrey Kleintop, the pattern of the past two months marks an important juncture, and he’s anticipating the shift has years to run.